11 Stocks in the Spotlight Following First-Quarter Results

In this article, we will take a look at the 11 stocks in the spotlight following first-quarter results.

Beverage giant The Coca-Cola Company (NYSE:KO), healthcare services provider Universal Health Services, Inc. (NYSE:UHS) and coatings company Axalta Coating Systems Ltd. (NYSE:AXTA), were among the notable stocks that recently came out with their earnings reports.

Shares of Coca-Cola and Axalta Coating Systems rose following their upbeat financial performance for the first quarter. On the other hand, Universal Health Services shares turned red after posting a disappointing quarterly profit.

Photo by Austin Distel on Unsplash

Meanwhile, shares of some companies fell even after beating expectations for their respective quarters. For instance, shares of Lennox International Inc. (NYSE:LII) and Medpace Holdings, Inc. (NASDAQ:MEDP) dropped despite surpassing Q1 estimates.

Stocks in the Spotlight Following First-Quarter Results

11. Calix, Inc. (NYSE:CALX)

Number of Hedge Fund Holders: 21

Shares of Calix, Inc. (NYSE:CALX) marginally moved up in the after-hours trading session on Monday, April 25, 2022, after announcing better-than-expected profit and sales for the first quarter.

Calix, Inc. (NYSE:CALX) reported adjusted earnings of 22 cents per share, surpassing estimates of 20 cents per share. Revenue for the quarter advanced 14 percent on a year-over-year basis to $184.9 million, ahead of the consensus of $177.64 million.

Looking forward, Calix, Inc. (NYSE:CALX) guided for adjusted earnings in the range of 15 – 20 cents per share and revenue between $192 – $198 million for the current quarter.

Addressing shareholders in a letter, Calix, Inc. (NYSE:CALX) stated:

“The first quarter of 2022 was another record quarter for Calix. We delivered record revenue despite the ongoing global supply challenge. Moreover, the power of our All Platform model continued to reduce the seasonality of our business as the first quarter grew sequentially, a first in our history, and we expect this trend to continue.”

10. Lennox International Inc. (NYSE:LII)

Number of Hedge Fund Holders: 24

Shares of Lennox International Inc. (NYSE:LII) slipped over three percent on Monday, April 25, 2022, despite beating financial expectations for the first quarter. The climate control solutions provider earned $2.36 per share on an adjusted basis, up from $2.27 per share in the same period of 2021.

In addition, Lennox International Inc. (NYSE:LII) posted revenue of $1.01 billion, up 9 percent on a year-over-year basis. The results easily exceeded analysts’ average estimate of $2.04 per share for earnings and $961.61 million for revenue.

Lennox International Inc. (NYSE:LII) also released the sales performance of its flagship businesses. Revenue from its residential heating & cooling segment rose 13 percent to $682 million, while revenue from the refrigeration segment jumped 15 percent to $144 million. On the downside, revenue from the commercial heating & cooling unit fell 6 percent to $188 million in the quarter.

For fiscal 2022, Lennox International Inc. (NYSE:LII) raised its sales growth outlook to a range of 7 – 11 percent versus its previous projection between 5 – 10 percent. The company also reaffirmed its earnings outlook of $13.50 – $14.50 per share for the full year.

Like Lennox International Inc. (NYSE:LII), The Coca-Cola Company (NYSE:KO), Universal Health Services, Inc. (NYSE:UHS) and Axalta Coating Systems Ltd. (NYSE:AXTA) also came into the spotlight following their first-quarter results.

9. Crane Co. (NYSE:CR)

Number of Hedge Fund Holders: 25

Shares of Crane Co. (NYSE:CR) turned red in the extended hours on Monday, April 25, 2022, even after posting its first-quarter profit and sales above expectations. The Connecticut-based industrial products company reported adjusted earnings of $1.81 per share, higher than $1.57 per share in the comparable period of 2021.

Revenue for the quarter rose 3 percent versus last year to $801 million. The results were partly weighed down by unfavourable foreign exchange. Analysts were expecting Crane Co. (NYSE:CR) to earn $1.68 per share on revenue of $800.82 million.

If we break down the total sales by segments, revenue from the aerospace & electronics segment increased 2 percent to $157 million, while revenue from the process flow technologies business rose 8 percent to $311 million in the quarter. In comparison, revenue from the payment & merchandising technologies business inched down 1 percent to $333 million.

Among other updates, Crane Co. (NYSE:CR) announced that it has inked a deal to sell Crane Supply in a transaction valued at 380 million Canadian dollars. However, the agreement is subject to regulatory approvals.

Moreover, Crane Co. (NYSE:CR) also reaffirmed its profit outlook for 2022. It continues to expect adjusted earnings in the range of $7 – $7.40 per share for the full year.

8. Brown & Brown, Inc. (NYSE:BRO)

Number of Hedge Fund Holders: 25

Shares of Brown & Brown, Inc. (NYSE:BRO) rose nearly two percent in the after-hours trading session on Monday, April 25, 2022, following its upbeat financial performance for the first quarter.

Brown & Brown, Inc. (NYSE:BRO) reported adjusted earnings of 78 cents per share, beating expectations of 75 cents per share. Revenue for the quarter rose 11 percent on a year-over-year basis to $904.7 million, ahead of the consensus of $888.57 million.

Praising the latest quarterly performance, CEO of Brown & Brown, Inc. (NYSE:BRO), J. Powell Brown, said:

“We are very pleased with the strong results achieved for the first quarter of 2022. Our teammates continue to perform at a high level, delivering innovative solutions to our customers.”

7. Hexcel Corporation (NYSE:HXL)

Number of Hedge Fund Holders: 26

Shares of Hexcel Corporation (NYSE:HXL) turned green in the extended hours on Monday, April 25, 2022, after delivering impressive financial results for the first quarter. The results were mainly driven by recovery in commercial aerospace sales and higher build rates.

Hexcel Corporation (NYSE:HXL) earned 22 cents per share on an adjusted basis, swinging from an adjusted loss of 10 cents per share in the year-ago period. Revenue increased to $391 million, from $310 million in the first quarter of 2021. Analysts were looking for earnings of 17 cents per share on revenue of $370.89 million.

Hexcel Corporation (NYSE:HXL) also issued its segment-wise sales performance. Its commercial aerospace revenue climbed 48.3 percent to $218.9 million, space & defence revenue rose 5.8 percent to $118.2 million, and industrial revenue increased 4.9 percent to $53.5 million in the quarter.

Looking forward, Hexcel Corporation (NYSE:HXL) continues to expect adjusted earnings in the range of $1 – $1.24 per share and revenue between $1.50 – $1.63 billion for the current fiscal year.

Like Hexcel Corporation (NYSE:HXL), investors are also keeping a close eye on The Coca-Cola Company (NYSE:KO), Universal Health Services, Inc. (NYSE:UHS) and Axalta Coating Systems Ltd. (NYSE:AXTA), following their earnings reports.

6. Medpace Holdings, Inc. (NASDAQ:MEDP)

Number of Hedge Fund Holders: 26

Shares of Medpace Holdings, Inc. (NASDAQ:MEDP) plummeted nearly 10 percent in the pre-market trading session on Tuesday, April 26, 2022, despite delivering solid profit and sales for the first quarter.

Medpace Holdings, Inc. (NASDAQ:MEDP) reported earnings of $1.69 per share, up from $1.14 per share in the first quarter of 2021. Revenue for the quarter jumped 27.3 percent on a year-over-year basis to $327.09 million. The results surpassed the consensus of $1.26 per share for earnings and $327.09 million for revenue.

The Ohio-based clinical contract research organization also issued its financial outlook for 2022. It expects earnings in the range of $5.72 – $6.06 per share and revenue between $1.40 – $1.46 billion for the full year.

5. Cadence Design Systems, Inc. (NASDAQ:CDNS)

Number of Hedge Fund Holders: 34

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS) rose over five percent in the pre-market trading session on Tuesday, April 26, 2022, after delivering solid profit and sales for the first quarter.

Cadence Design Systems, Inc. (NASDAQ:CDNS) reported adjusted earnings of $1.17 per share, up from 83 cents per share in the year-ago period. Revenue for the quarter jumped 22.5 percent versus last year to $902 million. The results crushed the consensus of $1.02 per share for earnings and $857.32 million for revenue.

Moving forward, Cadence Design Systems, Inc. (NASDAQ:CDNS) expects adjusted earnings in the range 95 – 99 cents per share and revenue between $825 – $845 million for the second quarter. The outlook is above analysts’ average estimate of 92 cents per share for earnings and $823.74 million for revenue.

Discussing the results, CFO John Wall said:

“Q1 results reflect the success we have with our customers and partners, as well as the solid execution from the Cadence team. We benefited from strong demand for our technologies. We exceeded all key operating metrics for the quarter and are raising our full year guidance.”

4. Universal Health Services, Inc. (NYSE:UHS)

Number of Hedge Fund Holders: 35

Shares of Universal Health Services, Inc. (NYSE:UHS) plunged to a nearly five-month low in the pre-market trading session on Tuesday, April 26, 2022, following its disappointing profit for the first quarter.

Universal Health Services, Inc. (NYSE:UHS) reported adjusted earnings of $2.15 per share, missing the expectations of $2.46 per share with a big margin. On the bright side, revenue for the quarter rose 9.3 percent versus last year to $3.29 billion, beating analysts’ average estimate of $3.21 billion.

Like its peers, Universal Health Services, Inc. (NYSE:UHS) faced operational hurdles in the quarter due to shortage of medical professionals. The company had to recruit a temporary workforce at relatively higher wages for the smooth running of daily operations. However, higher costs weighed down on its profitability.

Universal Health Services, Inc. (NYSE:UHS) continues to expect adjusted earnings in the range of $11.90 – $12.90 per share and revenue between $13.424 – $13.694 billion for the current fiscal year.

3. Axalta Coating Systems Ltd. (NYSE:AXTA)

Number of Hedge Fund Holders: 37

Shares of Axalta Coating Systems Ltd. (NYSE:AXTA) rose over four percent in the pre-market trading session on Tuesday, April 26, 2022, after announcing better-than-expected financial results for the first quarter.

Axalta Coating Systems Ltd. (NYSE:AXTA) reported adjusted earnings of 31 cents per share, down from 50 cents per share in the comparable period of 2021. Revenue came in at $1.17 billion, up 10.4 percent on a year-over-year basis. The results exceeded analysts’ average estimate of 26 cents per share for earnings and $1.11 billion for revenue.

Axalta Coating Systems Ltd. (NYSE:AXTA) also released its segment-wise sales performance. Revenue from its performance coatings business jumped 15.1 percent to $814.4 million, while mobility coatings revenue inched up 1 percent to $359.7 million in the quarter.

Commenting on the quarter, CEO Robert Bryant said:

“Despite the unprecedented breadth and rate of cost inflation, we are increasing prices aggressively and working hard to ensure we are fully sourced to support our customers’ needs. Raw material availability remains challenged with the potential for areas of trade flow concerns if China COVID-19 lockdowns persist deeper into Q2.”

2. Otis Worldwide Corporation (NYSE:OTIS)

Number of Hedge Fund Holders: 38

Shares of Otis Worldwide Corporation (NYSE:OTIS) closed higher on Monday, April 25, 2022, after beating profit expectations for the first quarter. The New York-based elevator manufacturer earned 77 cents per share on an adjusted basis, ahead of the consensus of 74 cents per share.

On the downside, revenue came in at $3.414 billion, nearly unchanged from last year and below analysts’ average estimate of $3.43 billion. If we look at the performance of flagship segments of Otis Worldwide Corporation (NYSE:OTIS), services revenue rose 2.2 percent to $1.99 billion. In comparison, new equipment revenue fell 2.5 percent to $1.42 billion in the quarter.

Otis Worldwide Corporation (NYSE:OTIS) also updated its earnings outlook for fiscal 2022. It now expects adjusted earnings in the range of $3.22 – $3.27 per share, down from its previous guidance between $3.20 – $3.30 per share.

Speaking on the results, CEO Judy Marks said:

“Otis delivered a strong first quarter with broad based growth in New Equipment orders and maintenance portfolio units, nearly 6% Service organic sales growth, 30 basis points of Otis adjusted margin expansion and high-single digit adjusted EPS growth.”

1. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 70

Shares of The Coca-Cola Company (NYSE:KO) recently hit an all-time high of $67.20 after delivering impressive profit and sales for the first quarter. The Atlanta-based beverage giant reported adjusted earnings of 64 cents per share, representing a decent surge of 16 percent over the first quarter of 2021.

Revenue for the quarter also climbed 16 percent on a year-over-year basis to $10.49 billion. Analysts were expecting The Coca-Cola Company (NYSE:KO) to report earnings of 58 cents per share on revenue of $9.83 billion.

Among other updates, The Coca-Cola Company (NYSE:KO) announced that its global unit case volume for the quarter rose 8 percent, while the operating margin increased 230 basis points to 32.5 percent.

Looking forward, The Coca-Cola Company (NYSE:KO) reaffirmed its financial outlook for 2022 despite the suspension of Russian operations. It continues to anticipate adjusted earnings per share growth in the range of 5 – 6 percent and sales growth of 7 – 8 percent.

Praising the latest results, CEO James Quincey said:

“We are pleased with our first quarter results as our company continues to execute effectively in a highly dynamic and uncertain operating environment. We remain true to our purpose and are staying close to consumers. We are confident in our full-year guidance, and we are well-equipped to win in all types of environments as we fuel strong topline momentum and create value for our stakeholders.”

You can also take a peek at 10 Best Micro-Cap Stocks to Buy According to Hedge Funds and 10 Undervalued Dividend Kings To Buy In 2022.

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Disclosure: None. 11 Stocks in the Spotlight Following First-Quarter Results is originally published on Insider Monkey.